China Is Increasingly Holding U.S. Citizens Hostage Indefinitely

China imposed exit bans on two U.S. citizens: a senior executive of U.S.-based Wells Fargo Bank and a federal employee of the U.S. Commerce Department. These incidents underscore the significant risks of conducting business or traveling in China.

Very little personal information is public regarding the federal employee affected by the exit ban, likely due to his affiliation with the U.S. government and concerns for his safety. According to the South China Morning Post, he is a naturalized U.S. citizen who originally came from China and is a veteran of the U.S. Army. He traveled to China in April to visit family but has been unable to leave since then. The reason for the exit ban is unclear, but The Washington Post suggests it may be related to his alleged failure to disclose his U.S. government employment on his visa application to Chinese authorities. U.S. Commerce Secretary Howard Lutnick condemned Beijing’s exit ban and vowed to resolve the situation of the affected employee.

In contrast, more information exists about the Wells Fargo executive affected by the exit ban. Her name is Chenyue Mao, a naturalized U.S. citizen originally from China, and a managing director in Wells Fargo’s Atlanta division. Mao is reportedly an expert in factoring, a process in which exporters in one country “sell unpaid invoices to third parties, who then collect payments later from importers in another country.” Mao has previously collaborated with Chinese companies in trade financing and factoring.

Shortly after announcing her appointment as the Chairwoman of Factors Chain International (FCI) on LinkedIn, Mao traveled to China for business. Chinese authorities, however, prohibit her from leaving China for the U.S without disclosing specific reasons. This lack of transparency apparently prompted Wells Fargo’s management to suspend all business travel to China. After Mao’s case was widely reported in international media, China’s Foreign Ministry finally acknowledged Mao was kept from leaving China due to an involvement in a criminal investigation, without giving any detail on the nature of the investigation or how long Mao had to stay.